Investors might have a chance at making back some of yesterday's losses on Thursday. ASX futures are indicating an upwards move in Australian shares this morning. This follows a reasonably green night on the US market overnight.
Ahead of the market open, S&P/ASX 200 Index (ASX: XJO) futures are suggesting a 0.53% increase in the benchmark index.
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What happened overnight?
Although it was a shaky start to trading on Wall Street last night, sentiment shifted as the market moved closer to the closing bell. In turn, all three major US indices finished above their previous close. Specifically, the Dow Jones Industrial Average added 0.3%. Meanwhile, the S&P 500 and Nasdaq composite gained 0.4% and 0.5% respectively.
Some standout performers on the US market overnight included Mastercard Inc (NYSE: MA), Paypal Holdings Inc (NASDAQ: PYPL), PepsiCo, Inc. (NASDAQ: PEP), and Microsoft Corporation (NASDAQ: MSFT). These companies gained 1.6%, 1.5%, 2.6%, and 1.5% respectively.
The late rally in markets overnight comes amid signs the US senate is nearing a temporary agreement to allow an extension of the federal debt ceiling into December. This would at least avoid tarnishing the United States reputation for never missing a debt repayment.
Additionally, ASX futures are pointing higher as analysts at National Australia Bank Ltd. (ASX: NAB) suggest that Europe's gas crisis is "far from over". While this could be met with optimism in ASX-listed energy producers today, it is also balanced out with the US energy secretary revealing considerations of selling strategic oil reserves to dampen oil prices.
Moving ASX futures today
Oil prices dropped 2.35% to US$77.09 a barrel last night. However, oil and gas shares will likely still be in focus as concerns of energy supply linger.
Furthermore, gold producers will be at the top of some watchlists today following strength in the precious metal. The spot price of gold inched 0.2% higher to US$1,765 an ounce. As a result, big-name ASX-listed gold miners such as Northern Star Resources Ltd (ASX: NST) and Evolution Mining Ltd (ASX: EVN) could benefit from the price lift.
Finally, ASX futures could be boosted higher as a large swathe of Aussie companies dish out dividends to shareholders today. Such companies include Breville Group Ltd (ASX: BRG), South32 Ltd (ASX: S32), and Wesfarmers Ltd (ASX: WES).
